Bank of America is in the market with a new $70 million facility for Baltimore-based MedStar Health, a not-for-profit health care system located in the mid-Atlantic region. The facility comprises a $10 million revolver and $60 million term loan; both are 364-day and secured by unrestricted cash and marketable securities.
The new facility refinances debt and provides working capital needs following MedStar's recent $150 million tax-exempt bond offering, completed in May 2001, according to a banker familiar with the credit. The credit is priced at LIBOR plus 85 basis points when drawn and carries a fee of 15 basis points on the undrawn portion of the revolver. Commitments of $25 million will bag 25 basis points, $20 million, 20 basis points, and $15 million receives 15 basis points. MedStar is rated BBB/Baa2, and operates seven major hospitals in the Baltimore/Washington D.C. area. Total assets are $1.91 billion and annual net operating revenue is $1.84 billion. Repeated calls to officials at MedStar were not returned.